Lazy habit costing Aussies $52 a month

New data from big four bank NAB found that 30 per cent of Australians had cut back on subscription services like TV and music streaming platforms and other services like gym memberships, app subscriptions and regular food delivery services.

NAB personal banking executive Kylie Young warned people against falling into the “set and regret” trap, where they sign up to a free trial of a program, which automatically transfers them to a monthly subscription.

She said the $52 figure was the equivalent of the basic plan of five streaming services.

“Signing up to a new streaming service to take advantage of a free trial period can be great, but when you ‘set and forget’, it’s just as easy to ‘set and regret’,” Ms Young said.

“Regularly checking what you’re signed up to can also help you work out if you’re getting the best value, whether there is a cheaper plan available or an option to split the cost with a partner or housemate.

“Keeping track of your subscriptions and direct debits can seem overwhelming, but new digital tools from your bank can automatically categorise the costs for you so you can check them quickly and easily.”

The data found people aged 18 to 29 year old were most likely to cull their subscriptions, with 41 per cent of people from the age group surveyed stating they had cut their recurring payments.

The findings were from the bank’s Q2 2023 Consumer Sentiment Survey, with about 2000 people taking part.

New research from NAB has found streaming services are the first to go for Australians trying to cut back amid a cost-of-living crisis.

The big four bank found 30 per cent of Australians have reduced the subscription services, saving an average of about $52 a month or $624 a year.

According to figures from the Australian Bureau of Statistics (ABS), the consumer price index has increased by 7 per cent in the 12 months to March this quarter. Interest rates have also hit an 11-year-high to 4.1 per cent.

Discretionary spending on goods and services was also 0.6 per cent lower in May compared with last year’s figures, a fall ABS head of business indicators Robert Ewing said was a direct response to cost-of-living pressures.

“Driving the fall in discretionary spending over the year was 4.8 per cent less spending on furnishings and household equipment and 3.4 per cent less on clothing and footwear,” he said.

Originally published as New data finds subscriptions services first to go in cost-of-living crisis